These partnerships just seem to keep happening faster and faster: niche private credit managers teaming up with large global asset manager for a win-win partnership.

Brookfield is investing $1.5 billion in capital, which includes capital into Castlelake’s investment strategies by Brookfield Reinsurance. Brookfield Asset Management has some $900 billion in AUM, and has focused on the $300 billion Brookfield Credit business in recent years. The business integrates Brookfield’s credit capabilities with its partnerships including Oaktree Capital Management, LCM Capital Management, 17Capital and other affiliated managers.

Castlelake was founded in 2005 by Rory O’Neill and Evan Carruthers around asset-based investments, and the firm manages some $22 billion of AUM for about 200 institutional investors. The strategies include aviation, specialty finance and real assets.

O’Neill and Carruthers in a joint statement said: “In Brookfield, we believe we have found a like-minded partner… to grow and evolve Castlelake into one of the foremost asset-based investment firms in the market.” The company and its senior leadership will continue to operate its business independently.

Brookfield only recently formed its credit arm to drive growth alongside its real estate and infra businesses. As everyone else, they would like to manage more credit assets on behalf of third-party insurers. Brookfield expects credit to be its fastest growing business.

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PrivateMarketsNews.com